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Goldman Sachs to Pay Record Fine Over 1MDB Scandal

McKenzie Beard

   A settlement has been reached over charges leveled against Goldman
   Sachs Group Inc. related to the global financial institution's
   conspiracy to violate foreign bribery laws in the United States.

   The firm will pay $2.9 billion in the plea deal, the largest penalty of
   its kind in U.S. history, for its role in Malaysia's 1Malaysia
   Development Berhad fund corruption scandal, known as 1MDB.

   In total, Goldman Sachs will pay more than $5 billion globally.

   The Asian subsidiary of Goldman Sachs pleaded guilty after admitting
   Thursday the company "knowingly and willingly" conspired to violate the
   Foreign Corrupt Practices Act. Representatives of the firm admitted
   violating U.S. anti-bribery laws by engaging in bribery that resulted
   in the looting of billions of dollars from a fund designed to increase
   economic development in the country.

   In a [1]news release issued by the U.S. Department of Justice, Special
   Agent in Charge Ryan L. Korner of IRS Criminal Investigation's Los
   Angeles field office, said "1MDB was established to drive strategic
   initiatives for the long-term economic development of Malaysia. Goldman
   Sachs admitted today that one billion dollars of the money earmarked to
   help the people of Malaysia was actually diverted and used to pay
   bribes to Malaysian and Abu Dhabi officials to obtain their business."

References

   1. https://www.justice.gov/opa/pr/goldman-sachs-charged-foreign-bribery-case-and-agrees-pay-over-29-billion

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